INTRODUCTION

As early as 3000 B.C. Egyptians used toothbrushes fashioned from twigs. In the 20th century a major design advance occurred in 1938 with the launch of Dr. Wests Miracle Tuft toothbrush, the first nylon bristle brush. Until the late 1970s toothbrushes were widely viewed by consumer as a commodity and were primarily purchases on price. The involvement remained low and the companies also treated their toothbrushes as an extension, to get their consumers to use their toothpastes. Typically in the Indian market the percentage of toothbrush users has slowly inched upwards. As it has always been associated by the non-users as a non-essential item more so because of their fierce loyalty to the margosa twigg(Datun) and the index finger. The market of late has been the entry of several foreign players and the marketing game has assumed a totally new dimension. Companies are trying to shift to PULL strategy of long term returns and the inclination of consumers to shell out a few rupees extra to ensure a more wholesome care of their teeth and gum. This has resulted in rapid growth in value terms. Added to this is the initiative of the companies to focus on expanding the market by bringing the over 65% non-users in their consumer fold. With such vast potential to be exploited, the entry of several new players with their innovative ideas and experience in similar developing markets, the industry is likely to see a lot of action in the immediate future.

i . ex e

OBJECTIVE
The above of the project was manifold. First of all a general idea of the toothbrush industry - its competitiveness, volume and potential was to be adjudged. Next was to go on to analysis of the attitudes of a typical consumer and his/her idea/perception of this low involvement category product. This was to be followed up with the study of Colgate Plus toothbrush, as a typical product of the company, Colgate Palmolive and its standing in the market vis--vis other players, especially new entrants. To amalgamate all above to conclude as to what was to be the future/probable course of the toothbrush industry and Colgate Plus tooth brush in particular.

METHODOLOGY
1. To get an idea of the industry, I went through all the relevant literature we could lay my hands upon. This included A & Ms, Business Todays. 2. For consumer attitudes, I prepared a questionnaire that was circulated among 70 odd people, well spread out across the whole of Mumbai. The same was done with the retailers to try and see the conformity in findings in some specific attributes. 3. The questionnaire was to structured that an idea of brand image and relative studying of various brand could also be elicited. 4. The findings were synthesized, and keeping in mind the new entrants, their potential and the potential of the market, projections were made and conclusions were drawn.

COMPANY PROFILE
A household name for paste and tooth powder, Colgate Palmolive (India) was established on 23rd September 1937 as a private limited company in Bombay, as a wholly owned subsidiary of Colgate Palmolive Co. Of USA Initially it started with trading activity and later set up manufacturing operations in 1949 at Sewry (Bombay). The company became a public limited company on 5th October 1978. In 1990-91 the company commissioned

facilities for fatty acid and toilet soap at Waluj (Aurangabad). The plants at Sewri and Waluj manufacture oral care products like dental creams, tooth powder tooth brushes and personal care products like toilet soaps, shampoo, which are marketed under various brand names such as Colgate, Palmolive, Halo, Protex and Charmis. The companys distribution network covers 1700 stockists and 4,50,000 retailers with ware house facilities in Mumbai, Calcutta, Delhi, Hyderabad, Lucknow and Madras ( and a new addition at Faridabad). The company has its own Research and development facilities and had also been getting the R&D benefits of the parent company. It has a well established quality Control Department at Sewri & Waluj. For 40 years, since inception till 1978, Colgate was carrying on its business in India with a paid up capital of Rs. 1.5 lakh made up of 1500 equity shares of Rs. 100 each, when it was increases to Rs. 1.96 crore, by a bonus issue in the ratio of 130:1. To comply with the FERA regulations, Colgate Palmolive, USA diluted

its share holding to 40% in the Indian company, through an offer of sale to the Indian public in October 1978. Following FERA relaxation, the foreign

shareholding was increased from 40% to 51% in September 1993. Colgate Palmolive (CP) is a global leader in household and personal care products. In 1991, it had sales of $ 6.06 billion and a gross profit of $ 2.76 billion, its world wide R&D expenditures were $ 114 million and media advertising expenditure totalled $ 428 million. Colgate Palmolives five year plan for 1991 to 1995 emphasized new product launches and entry into new Geographic markets, along with improved efficiencies in manufacturing and distribution and a continuing focus on core consumer products. In 1921 $ 243 million was spend to upgrade 25 of Colgate Palmolives 91 manufacturing plants, 275 new products were introduced world-wide; several strategic acquisitions (e.g. of the Mennen mens toiletries company) were completed and manufacturing began in China and Eastern Europe. Since 1985, gross margins had climbed from 39% to 45% while annual volume growth since 1986 had averaged 5% International sales Colgate Palmolives strong unit, accounted for 64% of sales and 6% of profits in 1991.

COMPANY STRATEGY - ORAL CARE AND TOOTHBRUSH INDUSTRY IN PARTICULAR

Volume is the key says Richard Usuquen, VP Marketing Colgate Palmolive (India) Ltd. To expand the market in all ranges, CP has an ongoing RURAL VAN PROGRAMME and SCHOOL PROGRAMME covering 14 million villages and 80 million consumers, teaching people brush or even clean their teeth with the fingers. CPs action centring around finely balancing the urban market - (59.5%) and rural markets (68% share) . So while the company has introduced such premium packaging as stand up toothpaste tubes with flip-up caps in the urban market, it is also selling sachets of Colgate dental cream at low prices. This focus on volumes is also evident in the toothbrush market, estimated at 400 million units per annum. C-P is the toothbrush leader in India with an approximately 60% market share, but since 95 it is facing challenges from HLL which has already garnered 8% market share. Usuquen says The penetration of brushes in India is very low, so more than market share, it is important to grow the market. To that end CP has actively introduced line extensions across all three segments - economy, middle and premium since last year. At the entry level it has adopted the sleeve packaging, with no individual cases. The focus is on driving volumes through

the price-sensitive segment. The mid-price market has been the introduction of the HIGH KLEEN range, while the upper end has seen the zig - zag and Double - Action launches. For the economy segment, a price focus has been adopted. On offer are five toothbrushes each from the CP and Cibacca stables to rural consumers, at prices low enough to generate trial. For the urban market, the focus is on maintaining novelty value by introducing new variants and added features. Whatever is new, people buy. So the idea is to accelerate choice through a variety of product features. CPs perception of the Indian market is of one where people welcome change but clamour for high end products at cheaply prices. The answer to this conundrum as per the companys strategy is to ..... Optimise cost and formulation and the proceses and come up with efficient manufacturing to answer this . CPs strategy is to pour in a lot of investment in the Indian market in terms of capital expenditure and

organizational support and each out to the deepest interiors.

SEGMENTATION
The toothbrush industry can be regarded as a component of the Oral Care industry which broadly comprises tooth paste, mouth wash and floss, besides

tooth brushes and a large unorganized naturally available cleaning mediums viz. Index Finger, Neem twigs etc. But Colgate Plus need not to bothered about latter as it operates in a different category. The tooth brush industry can be segmented in the basis of social class & income group (Demographic Segmentation ), price (Product segmentation), benefit (behavioural segmentation), the last being the most important.

DEMOGRAPHIC SEGMENTATION ACCORDING TO PRICE

Segment Category Brands Promise, Cibaca Characteristic Looking for low price

Low income rural Economy class Middle consumer Upper income consumers Upper class urban Super sophisticate Premium middle Premium urban income Standard

Colgate

Classic

Value for money

group semi urban

Pepsodent popular

Colgate

Plus, High quality cleaning efficiency

Classic, Ajay, Royal

Oral B, Aquafresh, Unique, Jordan, Close Up dentists

attribute,

recommendation The last two categories merge, since Colgate Plus is intelligently positioned in between the two to maintain a high quality in age as well as encourage switches from standard category to up grade

PSYCHOGRAPHICS
8

Variations in Product

Jazzy looks, Transparent handle Flashy colours Superior Packing

Simpleton looks, Modest packaging, Solid colours

Mix of the two : transparent handle but not very flash packaging.

Urban sophisticate

Chooses with care, sports it as a status symbol while interacting in group travels

Abhors

Abhors

Semi urban Non Chalant User

Aspires for it, but finds it difficult to afford; tries it seldom

Very often goes for this as it serves is purpose without much expenditure

Some times this

Rural User

Does not have of

Is the only option

Generally cant afford this either

access/cant think Datun

Tooth brushes brands

Oral B, Jordan, Aqua fresh etc.

Promise, Forhans Cibaca, Ajanta, etc. Ajay etc.

The overall response reflects a gradual move in the direction of the premium to super premium segment as it is once in three months/four months purchase, thus being successful in luring all customers (except the rural user who are a small minority of the Market) to try out the ones that are places at a higher price on account of their trendy looks and overall appeal of style and splendor.

BENEFIT SEGMENTATION
User Characteristic Invalid oral health Involved consumer Therapeutic Brushers Product Differentiater Search functionally superior with attributes. Advertising appeal Put hardsell dentist recommendation or opinion Buying behaviour informed off oral Uninvolved Oral

health Consumer Health Consumer Cosmetic Brushers Search product Non-chalant Brushers for Views products

that as same Lack of interest

product effectively many delivers cosmetic benefits by Influenced

by Relatively unaware of ads

Prefers promotion,

hammering on a can at most be USP influenced price by offs,

package deals

Buys for himself, Buys and uses Buys for family., will go to a for himself. Will will pick up any

specialised store

not go beyond a brand available. large shop,

supermarket Regularity of Brushes after Brushes mostly At most once a

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usage

every meal

once, sometimes day twice

Brand loyalty

High

Low 15-20

Nil <12/0q

Price (Willing to >20 pay) Major Brands

Jordan, Oral - b Colgate Indicator Pepsodent Perfect

Plus, Colgate, Classic, Cibaca, promise

11

TARGETING
Colgate plus has been intelligently targeted at the upper middle class, towards the lower end of Premium / super Premium category to not only take advantage of growing consumer affordability but also to provide a pull factor to family user in standard/popular category to upgrade to higher quality Colgate Plus. An implicit assumption about the large segment is that it is decently educated, hygienic conscious and keenly discerning about the cleaning efficiency of the toothbrush used. They primarily live in metros, urban areas, big towns, and have a good standard of living. At the time of its launch in 1987, Colgate Plus was the first indigenously manufactured toothbrush in premium segment. Company claims, it built this segment single handily and obviously has the first mover advantage exemplified by its No.1 position despite the onslaught of variety of premium brands from abroad. Colgate believed that with rising income & increasing westernisation, it could upgrade the toothbrush market and consumer could be willing to pay a few rupees more for a quality product.

12

DIFFERENTIATION & POSITIONING

In the toothbrush market which is heavily cluttered both in terms of brand varieties and corresponding messages and constant hammering of almost similar USPs it is very difficult to differentiate and position a product as mundane as a tooth brush in the consumers mind to persuade him to become a loyal user. Positioning in tooth brush market done at various levels PRODUCT : Design differentiation like angular neck, dolled rubber grip,

rigged edges and design of bristles, convenient head shaper etc. These work only in upper segment, which is willing to pay a premium for added attributes. Colgate Plus has a unique diamond shaped head & soft outer bristles. PACKAGING :Cardboard cartons, transparent blisters, hanger shaped

hooks, coffin packing (storing when not in use). In a blister pack, packaging makes up to 40% of cost. Colgate Plus comes in transparent blister pack with a hanger shape hook. PRICE : By super premium pricing one can give a perception or aura of technical superiority/high quality to a brush Jordan, Oral - B, Close Up Contact have followed this route. Or one could take value for money route to target large families and heavy user economy pricing for market penetration especially in rural markets. Colgate plus has positioned itself in lower end of super premium category.

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RECOMMENDATION / RELIABILITY : Oral - B has its USP as the tooth brush most dentists world wide use & recommend - One could go for celebrity endorsement in cosmetic segment but its not at all an effective strategy in a low involvement product like toothbrush. Colgate world - wide has a image of brand for committed to public oral care and hence its association with a dentists and the ring of protection & confidence. Positioning Colgate Plus as a higher quality product in the Professional segment was an intelligent move as it prevented cannibalization of its other brands like Colgate Classic.

BRANDING
Colgate is a brand having a cult following. It world wide reach and association with dental health has made it a brand associated with a caring attitude, providing quality oral care to masses at an affordable price. Colgate is No. 1 brand in Indian Market the three consecutive surveys by A & M magazine. So, while launching the new toothbrush, it was imperative to keep Colgate as a part of the name and incorporate something that could justify the increment in price. As modifications in the form of an entirely new category diamond head was introduced, it was ideally decided upon a name that promised to deliver something extra, additive, etc. Plus was thus added on.

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MARKETING MIX
PRODUCT
Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. The product can be looked at five levels: The Core product is the essential service that the buyer is buying. In this case it is Oral care. The Generic product is toothbrush. The Expected product is a set of attributes that the buyer expects to get./ in this case being, efficiency of cleaning, thoroughness in cleaning and care of gums. Augmented Product is that what is provided by the seller beyond the expected product attributes i.e. those attributes that seek to distinguish the product from others in its category. Colgate Plus is put across as a complete dental care product. It uses its diamond shaped head, soft outer bristles, hard inner bristles and accreditation by the Indian Dental Association as its USPs. Potential Product refers to set of possible new features that might eventually be added to the product being offered. Toothbrush as a product does not

15

offer much scope beyond changes in design and material/ shape of bristles. Design changes are usually made on grounds of aesthetics, handling and efficiency in cleaning. Colgate Plus has recently introduced Colgate Plus Zig Zag on the grounds of efficiency in cleaning.

Some product differentiates in the industry are ;

Pepsodent Popular - the Squiggle between the head and the handle is flexible and stand along structure. Jordan Magic - the colour changes to indicate when you have brushed enough. Close-Up Confident access. Oral - B -blue tuft as indicator which loses colour as bristles harden with use. -a thick handle with a shall head giving better

PACKAGING:
Packaging provides one with means and scope of differentiating in relatively homogenous product market. Packs have graduated from cardboard cartons to blister packs to let the consumer pick the colour of his choice. Some like Pepsodent Perfect and Colgate Plus, come in hanger shaped hooks on the

16

blister packs because most small sized retail outlets lack the shelf space required to dangle peg-racks. The pricing depends a lot on the packaging and advertising. In a blister pack,. The product makes up 60% of the cost, packaging the rest. A coffin pack, where the brush can be kept back after use, inflates the packaging cost. While these hygiene packs do prevent the toothbrush from accumulating dust, they end up with a double layer of packing, the outer one indicating mandatory product details.

Major Operators in the Premium Toothbrush Segment

Product/Man ufacturer Oral Indicator (Gillette) B Indicator Bristles Tells when change toothbrush Reach (Johnson Johnsons) Angled neck, Cleans even Slimmed & raised rubber hardest ridges handle Colgate Plus Diamond Reaches Unique Because your
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Feature

Benefit

Reason

Tagline

you Blue to fades the way

band The

brand

half most dentists use

Feel

the

to down tapered difference head

on reach places

(Colgate Palmolive)

Head, outer hard bristles

Soft inner crevices diamond

smile

was

and of the mouth, shaped head meant to last inner gentle gums, comfort efficacy and to (narrow front) in a lifetime

Aquafresh Flex (SmithKline Beecham)

Pressure sensitive squiggle neck, dotted

Prevents gum Flexes as you For irrigation brush

gentle

to dental care

absorb extra pressure

rubber grip

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PLACE
A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods from those who want them. The decisions regarding distribution channels are a very crucial part of the marketing of Fast Moving Consumer Goods (FMCGs) more so because of tooth brush being a low price product with negligible brand loyalty, no Consumer would be willing to walk more than 2 km to procure a tooth brush and would accept, without much hesitation, any toothbrush thrust upon him by the shopkeeper. So the markets has to make extra efforts to ensure easy availability of this low involvement product, which is no easy task in a country of the size & diversity as that of India. Channel decisions have important implications for other elements in marketing mix. Colgate Palmolive had to design a distribution strategy which would best attain following channel objectives. Achievement of greatest possible coverage of the target market Ensuring that the consumer can easily procure the toothbrush (Under no conditions stock out can be allowed.)

19

Maintaining mutually beneficial relationship with the retailers since tooth brush is basically push marketed.

PROMOTION
The discussion of marketing mix elements cannot be complete without analyzing the promotional strategy of the company. In a low investment category, where there is hardly any individual who can call himself brand loyal and most of them happy with whatever toothbrush they can lay their hands on, without caring too much about price, a marketing effort to ensure an optimum push and pull combination and an impact presence in the consumers mental frame is a must. However, because of the callous attitude with which consumers purchase a tooth brush, too much marketing effort in one direction or some particular defined directions without immediate appraisal does not make sense, more so because of the low turnover to promotional expenses. It simply does not make sense to spend 20% extra on promotion to gain 0.2% extra market share. In view of the above. Colgate Plus has been very selective about its campaign and has moved between mediums very slowly. Advertising Campaign Colgate Plus launched in the U.S. in 1985, was introduced in India in 1987 and was among the very few players in the premium segment. Colgate

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brand name was capitalized upon

with the diamond shaped head being

shown as the hero in oral care and all set to take on the toothbrush market. As competition intensified it shifted its focus on softness and comfortable feeling with efficiency in cleaning plaque. The advertisements were screened on Doordarshan and in leading magazines. They were targeted to the family as a whole, very much like the strategy for other Colgate products. The focus gradually shifted to soft outer bristles and hard inner bristled to ensure a caring approach to gums and meticulous cleaning. The tagline used was . . . Because your smile was meant to last a lifetime. There was parallel thrust on Dentist Accreditation which successfully translated into Colgate Plus beginning to appear on dentist prescriptions. However in the face of intense competition, no large scale endorsement by event or personality was sought for and Colgate Palmolive continued to target the family as it kept on doing with its toothpaste. Throughout its advertising strategy planning Colgate Palmolive relied nonprofessionals by :Redifussion. Sales Promotion 1. POP : The company provided danglers, small posters and agencies. The account is currently handled

hooked/dispenser packing to its retailers. These were particularly splashed across retail outlets during the discount periods with Red &

21

Yellow colour combinations to ensure high rate of impulse purchases. However, besides the discount offers, no other POP display means made much of an impact in terms of increase in sales. 2. Health Mela : Colgate Palmolive organizes a Young India Dental Health melas in select cities where free check ups and free sample distributions of toothpaste and toothbrushes are done. This aims at achieving a three pronged strategy of Increasing dental care consciousness to create a good brand recall of Colgate oral care products to increase the companys image as a socially responsible entity.

3. Keeps India smiling - Ad campaign : In a break from its earlier attitude of only ascribing to its oral care image. Colgate joined the list of companies basing their campaigns on the 50 years of independence. They launched a Vande Mataram series of campaigns with people from all walk of life coming and sharing their experiences on how the times have changed for the better following it up with Vande Mataram. The small snippet was followed up with Colgate being flashed in the form of a smiling face, emphasizing both its attachment with the growth and development of the Nation and its contribution in keeping India smiling for the last 50 years

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thus striking both an intellectual and emotional chord. The snippets were strategically screened in key media slots. 4. Sponsorships : Though Colgate oral care products have not been has often

witnessed to promote any large scale events, Colgate

associated itself with TV serials based on social and family themes e.g., Humlog and Buniyaad - thus re-emphasizing their positioning as a family products. Though not all of the above specifically emphasized the promotion of Colgate Plus toothbrushes, they are conclusive image building exercises for the

company as a whole and aimed at highlighting its supremacy and commitment to the oral care sector. As such it automatically translated into an image building exercise for the toothbrush category as well. Colgate Plus was distributed free with the September : issue of the filmfare magazines.

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PRICING
Generally the most important of all the PS in a developing country like India where semi-urban and rural population constitutes, a massive portion of the total market, has to be decided upon after contemplating on all the aspects related to the market and the product itself. For a product like toothbrush, the major cost is that of packaging (about 40% of total), the rest being spread over the bristles, the nickel silver wire holding the tufts in place and on the body of the brush. The prices of toothbrushes have taken a quantum leap. The costliest toothbrush in 1986 was Rs. 4/- which is today in the range of Rs. 25/-. Thus we have seem a major jump in value sales vis--vis volume sales. Colgate Plus when it was launched in 1987, was introduced as a champion product to become the hero of the toothbrush market meant to keep your smile forever. It promised to deliver more than the rest and was priced accordingly and soon became a major player in the market. At that time it was playing against Jordan and Royal, both of which were being imported. Gradually as the market expanded, with the several new players coming in, Colgate Plus continued to be the top most brand of the players till Oral - B, Aquafresh, Forhans Galaxy came in . So right now Colgate Plus priced at Rs. 18/- is behind Close Up Confident (Rs. 19.75/-), oral- B (Rs. 20/-) Forhans

24

Galaxy (Rs. 22/-) and Aquafresh (Rs. 25/-). As such it is at the bottom level of the Super Premium segment along with Johnsons Reach (Rs. 18/-) Jordan (Rs. 19/-), Forhans Zest (Rs. 18/-) trying to deliver more value for money. While the present strategy keeps Colgate Plus (all three-sensitive, adult and zig-zag) at a penetrative pricing as regards to Oral-B, Aquafresh Flex and Forhans Galaxy, it gets and advantage of superior oral care image vis--vis the other brands in the same price brand. The strategy can be said to be working well as Colgate Plus, as of today is the market leader both in terms of volume and value share.

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SWOT ANALYSIS
STRENGTHS 1. Colgate continues to be the number one brand in consumer perception as per A& M survey of the last four years. 2. Colgate products are perceived as a champion of the oral-card industry. 3. Advantage of better penetration, and better presence in the consumers mental faculties. 4. Massive retailer network and strong supply base. 5. Image of a company committed to complete dental care of the whole family. 6. Market growth of more than 25% in value terms. WEAKNESSES 1. Lacks the universal appeal and accreditation of world wide players like ORAL-B, AQUA-FRESH etc. 2. Has not been able to penetrate the rural segment in volume terms. 3. No regular system of feedback or appraisal of the sale status of is toothbrush. 4. Market growth of 10% in volume terms. OPPORTUNITIES

26

1. Any PUSH can be easily and quickly affected n account of its widespread presence. 2. Doing a NIRMA to the toothbrush market is something Colgate is quite capable of , given the base and vision that the company commands. 3. Investment into R&D and the sales campaign so as to effect a strong long term pull can transform the nature of the market completely as not one has acted in this direction so far. 4. With the average semi-urban/urban consumer ready to shell out this extra bucks it pays to go n for technological innovations and addition of utilities to this low involvement product which has to so far been centered only around cleaning of teeth. THREATS 1. Foreign brands like AQUA-FRESH, ORAL-B, JORDAN, etc are trying to take the course of the market to different dimensions. 2. The low margins being offered might go against the prospects of Colgate plus in case some player in the lower segment starts offering high margins. 3. Low Involvement category and poor brand loyalty - susceptible to sudden large scale switching in a very short span of time.

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SURVEY FINDINGS

CONSUMER SURVEY
FEATURES 1. No. of respondents 2. Areas covered : : 67 Defence Colon, Khan Market, South Avenue, North Campus, Sarojini Nagar 3. Nature of Survey 4. Objective : : Structure Questionnaire 1. To analyze brushing habits and associated attributes of the general populace. 2. Get a feedback from the Colgate Plus users. 5. Limitations : As only well to do families/people were accessed, the findings are expected to be asked to the premium and the super premium segment.

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FINDINGS RESPONSE Ask by name bought person 80 70 60 50 40 30 20 10 0 Ask by brand name bought it in person it MALES (%) FEMALES (%) 70.8 TOTAL (%) 62.8

brand 57.6

in 73.3

75.0

70.4

29

eagerness spend Rs. 5-10 Rs. 10-15 Rs. 15-20 > Rs. 20

to

29.0 41.9 25.8 3.0

0.0 29.2 45.8 25.0

22.5 40.0 30.0 7.5

50 45 40 35 30 25 20 15 10 5 0

Rs. 5-10

Rs. 10-15

Rs. 15-20

> Rs. 20

30

ASCRIBED TO No reason specific 59.4 33.3 50.0

word of mouth impressed advt. shopkeeper insisted dentists advice

15.6

16.7 20.8

19.1 11.9

with 9.3

15.6

20.8

14.3

6.3

8.3

4.8

60 50 40 30 20 10 0
No specific reason word of mouth impressed with advt. shopkeeper insisted dentists advice

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REPLACEMENT FREQUENCY 0-1 MONTHS 1-2 MONTHS 2-3 MONTHS 3-4 MONTHS > 4 MONTHS 23.5 26.5 23.5 23.5 2.9 12.5 29.2 29.2 16.7 16.7 17.4 28.3 30.4 19.6 4.3

0-1 MONTHS

2-3 MONTHS

1-2 MONTHS

3-4 MONTHS

>4 MONTHS

35 30 25 20 15 10 5 0

32

FREQ. BRUSHING

OF

Once (per day) Twice after every meal Not particular

50.0 44.2 2.9

28.0 68.0 4.0 0.0

46.7 46.8 2.2 2.2

very 2.9

70 60 50 40 30 20 10 0 MALE (%) FEMALE (%) TOTAL (%)

33

pressed with Advertisement YES NO 11.1 88.9 22.2 78.0 12.9 87.1

90 80 70 60 50 40 30 20 10 0

YES NO

MALE

FEMALE

TOTAL

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RELATIVE IMPORTANCE OF ATTRIBUTES MALES PRICE PACKAGING DURABILITY LONG HANDLE FLEXIBLE NECK COMFY. ANGLE SOFT BRISTLES LOOKS DIAMOND HEAD GRIP INDICATOR 62.7 40.2 74.5 51.9 52.9 68.6 78.4 46.1 36.3 58.8 28.4 FEMALES 57.3 49.3 74.7 60.0 60.0 78.7 86.7 40.0 41.3 68.0 41.3 TOTAL 61.2 44.6 75.4 57.0 57.1 73.7 82.9 44. 38.9 63.4 34.3 RANK 5 8 2 6 6 3 1 9 10 4 11

35

RANK

TOTAL

FEMALES

MALES

20

40

60

80

100

36

COLGATE PLUS USERS RESPONSE

Males v. Goo d Quality Access Value/pri ce Loyalty 17 90 42 Yes3 God Cant say 10 8

Females v. Goo d 40 97.5 60 Yes3 God Cant say 2.5 7 -

Total v. Goo d 21.5 95.5 51 Yes -3 God Cant say 13 4.5 17 -

73 10 50 No97

60 23 No97

65.5 32 No -97

100 90 80 70 60 50 40 30 20 10 0 Quality Access Value/price Loyalty

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FURTHER FINDINGS BRANDS COLGATE PLUS CIBACA ORAL-B CLOSE-UP PEPSODENT POPULAR JORDAN OTHERS PERCENTAGE 30.96 14.28 16.66 9.52 7.14 9.52 11.90

CLOSE-UP

BRANDS

JORDAN
38

35 30 25 20 15 10 5 0 CIBACA

BRAND RECALL BRANDS COLGATE PLUS PEPSODENT POPULAR CIBACA ORAL-B AQUA-FRESH AJANTA OTHERS PERCENTAGE 20.47 11.02 10.24 9.54 7.59 7.09 28.35

30 25 20 15 10 5 0

BRANDS COLGATE PLUS PEPSODENT POPULAR CIBACA ORAL-B AQUA-FRESH

Only about 5% of the respondents could not remember which toothbrush they were presently using which were excluded from the above computing.

AJANTA

39

RETAILERS SURVEY
FEATURES 1. No. of Respondents 2. Areas covered : : 20 Defence Colony, South Avenue, Khan Market, North Campus, Sarojini Nagar 3. Nature of survey 4. Objective : : Structured Questionnaire a) To gather the respond to new entrants vis--vis Colgate Plus as perceived by retailers. B) Retailers favorite brand(s) Margins offered 5. Limitations : Given the areas covered, the response was bound to be asked in favour of the upper class users. FINDINGS A. Availability Easy : Classic, Aqua-Fresh, Oral-B,

Pepsodent, Colgate Plus Not Easy : Royal, Prudent. B. Sales High : Colgate Plus, Cibaca, Classic, Forhans, Cibaca, Jordan,

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Pepsodent, Oral-B Satisfactory : Close-up, Ajanta, Ajay, Jordan, AquaFresh C. Profit Margins Highest High Medium Low * Highest Margin : 35-40% : : : : Classic, Royal Jordan Oral-B, Aqua-Fresh, Reach, Cibaca Colgate Plus, Pepsodent, Close-up Lowest Margin - 10-15%

N.B. Colgate Plus features in the lowest level of margin and yet commands the highest market share. The low margin was however denied by the Sales Office of Colgate-Palmolive at Mumbai, who claimed to offer equal to that of the industry standards. Colgate Plus was not backed up by any appraisal system whatsoever. Supply is kept regular on weekly basis.

41

D. Retailers Perception Of Preferences BY BRAND NAME CHEAP BRUSH SPECIFY PRICE RANGE EXPENSIVE TRY NEW ONESE 36.5% 9.3% 15.9% 21.5% 16.8

E. Retails insisted on Pushing Classic as it was moderately priced and yet offered a very good margin. * The D above was also substantiated by our consumer survey.

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CONCLUSION
The present day brushing habits of the Indian society as a whole leaves a lot to be desired - 41 toothbrushes are sold for every 100 persons per year! Total units sold add u to a little over 400 million, growing at the rate of 10% p.a in volume terms and 25% in value terms (difference explained by the shift to upper end of the market). This implies not much inroad has been made into the rural and semi-urban market. Non-users constitute about 65% of total population. While the global brands try to create new markets and add new dimensions, there is much greater latent demand. Out of their stable of marketing strategies, advertising till now had been low priority for the players (this was confirmed in our survey as 88.9% of respondents dont recall the ads). This indicates companies find it formidable to change the low involvement level psyche of consumers and the route of aggressive sales promotion by way of price offs, POP displays, tied sales and generous trade margins still hold the key to increasing off take of toothbrushes. No one has made a serious attempt in the virgin territory of 65% non-users (CPs Rural Van Programme is a recent drive). The thought of doing a Nirma to the toothbrush market has escaped everyone.

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Despite packaging constituting a substantial (upto 40%) of the cost of a toothbrush it has found to have influenced the purchasing decisions of the buyers. In our survey consumers corroborated to this effect (refer to the survey findings). Companies could rethink their strategy of increasing differentiability by packaging and instead invest in product development for the same.

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SUGGESTIONS
Some possible product improvisations Attached straight tongue cleaner cased in the toothbrush handle. Cartoons character printed on the handle to attract kids. Padding on the handle end to massage the gums. Casing the toothbrush (for kids) in a toy form. Neck with adjustable handle.

Get a certificate by the Indian Dental Association (IDA) for the toothbrush, like the Colgate Calciguard Toothpaste. Segregate the toothbrush types for different age groups, e.g., Children - Thicker handle for better grip, bright colours and cartoons printed on the handle. Young People of Teenager - more trendy colours and designs, like stripes or polka dotted, more vibrant colours. Adults - Simple designs and sober and decent colours.

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For the new entrant Introduce the product with the offer of one free toothbrush with the purchase of a brush which will help in blocking and prepointing the purchase of the buyer. As the target segment is the premium segment therefore, premium pricing of the product is necessary. Price the product at Rs. 251 -* or at Rs. 301- and not at Rs. 361 or Rs. 221- because the shopkeepers face a problem in returning small changes of Rs. 31 or Rs. 31- and Rs. 11 so they sometimes avoid the product as confessed by the shopkeeper. Add value to the product by giving tips on taking good oral care, in the back side of the package or a free pamphlet with the purchase of a brush, like brushing twice a day, flossing, polishing, regular dental check-up by your dentist, this shows a caring and concerned attitude by the company. With the purchase of a toothbrush, give a free coupons which is to be filled in by the consumer and can be used by him or her for getting a free dental check-up as when and where specified in the advertisement in the

newspaper. This kind of scheme can be implemented by the company once in two three months.

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However, these suggestions can be used by the big players in the market or the new entrant, who has to be a big player because a large investment is needed for such heavy sales promotion and also an attempt should be made to convert this low involvement product into a high involvement as it is concerned with personal card and hygiene and a product of daily use.

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CONSUMER QUESTIONNAIRE
1. AGE : 15-30 Years 2. SEX : Male 30-40 Years 40-50 years

Above 50 years Female

3. OCCUPATION : Govt. Service Self-employed Corporate Executive

Student Others (specify __________________) 4. MARITAL STATUS : Single Married with children

Married without children 5. AVERAGE MONTHLY INCOME/ALLOWANCE <Rs. 3000 Rs. 3000-6000 Rs. 6000-10000

Rs. 10000 - 20000

> Rs. 20000

6. Which toothbrush do you generally use? 7. Name any other five toothbrushes that you can recall 1 2 3 4 5

8. Who purchases your toothbrush? Myself A family member A Subordinate Yes No

9. Do you ask for a toothbrush by name?

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10. How much are you ready to spend on a toothbrush? Rs. 5-10 Rs. 10-15 Rs. 15-20 > Rs. 20

11. What prompted you to purchase your current toothbrush? Dentists advice Impressed with the advertisement Shopkeeper gave it to me A well-wisher recommended it to me Just bought it no specific reason. 12. How often do you replace your toothbrush? 0-1 month > 4 months 13. How often do you brush your teeth a day? Once Twice After every meal Not particular 1-2 months 2-3 months 3-4 months

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14. What according to you are the relative importances of the following?

V. Imp PRICE PACKAGING DURABILITY FLEXIBLE NECK COMFORTABLE ANGLE SOFTNESS OF BRISTLES LOOKS (TRANSPARENT HANDLE ETC.) DIAMOND HEAD GRIP INDICATOR

Imp.

Not so Imp.

Doesnt matter

15. Has any toothbrush ad (seen on TV/in a magazine) made an impact on you? YES ORAL-B AQUA FRESH ROYAL COLGATE PLUS NO IF YES, THEN WHY

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16. Kindly answer the following in case you have used Colgate Plus/Aqua Fresh toothbrushes: AQUA FRESH QUALITY *V. GOOD * GOOD * MODERATE * NO GOOD AVAILABILITY * EASY * NOT SO EASY * DIFFICULT IF IT WORTH THE PRICE IF THE BRAND IS NOT AVAILABLE, THEN I * YES *NO * CANT SAY * WILL WAIT * WILL NOT WAIT COLGATE PLUS * V. GOOD * GOOD * MODERATE * NO GOOD * EASY * NOT SO EASY * DIFFICULT * YES * NO

*CANT SAY * WILL WAIT * WILL NOT WAIT

THANK YOU FOR SPARING YOUR VALUABLE TIME!!

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RETAILER QUESTIONNAIRE
1. Location of the store : 2. Selling toothbrushes since 3. Brands stocked Colgate Plus Jordan Pepsodent Ajanta Cibaca Supreme Aqua Fresh Oral-B Promise Classic Royal Ajay

4. Which are the top three toothbrushes in terms of exist sales? 1. 2. 3. 4.

5. In case not covered above. What is the status of: 1. Aquafresh Good Picking up Picking up Moderate Moderate Poor Poor

2. Colgate Plus Good

6. How do consumers ask for a tooth brush? (Rank them) (a) Ask by brand name (c) Specify a price range (e) Keep trying newer ones 7. Which of these two companies make it a point to: (a) Get a regular feedback (b) Ask for a cheap brush (d) Go for an expensive brush

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Aquafresh Colgate Plus

Yes Yes

No No

(b) Maintain regular supply Aquafresh Colgate Plus Yes Yes No No

8. Rank your profit margin for the following brands: 1. Cibaca Supreme 3. Oral-B 5. Classic 7. Pepsodent 9. What is your 2. Colgate Plus 4. Aqua Fresh 6. Ajanta 8. Jordan a) Highest Margin b) Lowest Margin 10. If the consumer does not ask for a specific toothbrush then which one would you offer him? Why?

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BIBLIOGRAPHY
1. Business Today Library 2. A&M Issues of June 05, June 05, April 2006 3. CII Library 4. FORE Library 5. Kotler Philip (Principles of Marketing) 6. Kotler, Philip (Marketing Management).

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